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Demographics and Interest Rates in Asia
Author:
Mr. Serkan Arslanalp
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,
Mr. Jaewoo Lee
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, and
Umang Rawatnull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 172
Language:
English
Publication Date:
27 Jul 2018
DOI:
https://doi.org/10.5089/9781484370308.001
ISBN:
9781484370308
ISSN:
1018-5941
Pages:
23
Keywords:
WP; interest rate; real interest rate; rate of interest; demographics; interest rates; capital account openness; world interest rate; interest rate adjustment; dependency ratio; real interest rate increase; adjustment to saving; interest rate environment; aging speed; Real interest rates; Aging; Demographic change; Long term interest rates; Asia and Pacific; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Demographic developments have been regarded as one important cause of the long-term movement in global interest rates. This paper provides empirical evidence of the relationship between demographics and interest rates over a wide sample of advanced and emerging market economies. It also finds that capital account openness limits the direct sensitivity of a country’s interest rates to its own demographics. The results suggest that future demographic developments will continue to apply downward pressure on the interest rates in Asia which foresees a rapid aging.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2018: Issue 172